Europe awards first Solvency II equivalent status
Friday, 06 12 2015, Category: Insurance and Reinsurance, Country: Europe
On Friday, the European Commission announced that capital adequacy regulation in Switzerland should be considered equivalent with Europe's Solvency II, which is due to be implemented in January 2016.
Equivalence is aimed at reducing the regulatory burden for insurance entities operating in key overseas markets. This has potentially important implications for capital charges relating to reinsurance purchased from carriers based in non-EC domiciles.
For example, EU insurers operating in Switzerland would be able to use local rules to report on their operations in third countries, while third country insurers will be able to operate in the EU without complying with all EU rules.
Source: Commercial Risk Europe